PIP payments could be stopped for more than a million people under new plans to reform DWP benefit.
The UK Government’s welfare reform proposals could see Personal Independence Payments (PIP) worth £737.20 every four weeks stopped and replaced with talking therapies for more than a million people with mental health problems.
Disability charity Scope expressed surprise at the scale of the proposed changes to PIP, while the Solution Foundation warned that any significant reforms would also affect people with physical disabilities. On Friday, Chancellor Rishi Sunak stated that current spending on benefits for working-age individuals with disabilities or health conditions was £69bn – “more than our entire schools budget, our transport budget and our police force”.
He also noted that PIP expenses are projected to increase by over 50 percent over the next four years if no changes are made. Around 3.5 million people across Great Britain are currently receiving PIP, including around 219,000 applicants based in Scotland, with 37 per cent (1.3 million) of this total claiming psychiatric disorders such as stress, anxiety and depression. is available.
PIP offers additional financial assistance to adults who are disabled, have a long-term illness, or have a physical or mental health condition that requires assistance with daily tasks or mobility.
Numbers
The latest figures from the Department for Work and Pensions (DWP) reveal that a significant number of people were receiving Personal Independence Payment (PIP) as of January 2024.
Following the annual increase earlier this month, a successful PIP or Adult Disability Payment (ADP) claim for Scottish residents now provides additional financial support of between £28.70 and £184.30 each week. Since the benefit is paid every four weeks, this works out to between £114.80 and £737.20 per pay period.
Chancellor Rishi Sunak has expressed concerns about the potential abuse of this system. He argued for the need to “look again” at the benefits of PIP, noting that since 2019, the number of people claiming PIP citing anxiety or depression as their main condition had doubled.
“It’s not clear that they have the same increased cost of living as those with physical conditions,” he added.
A consultation on PIP will be published in the coming days. This will explore changes to eligibility criteria, the assessment process and the types of support that can be offered so that the system is better targeted to individual needs and more closely linked to a person’s situation rather than the current “one size fits all” approach.
The Prime Minister has announced plans to overhaul the disability benefits system, aiming for a fairer, more compassionate approach that remains sustainable. The upcoming consultation will explore alternatives to cash payments, such as access to treatments or services, that could lead to better outcomes, particularly for people with less serious health problems and well-managed conditions.
The review will also examine whether individuals with mental health problems may benefit more from services such as speech therapies or respite care, rather than financial support through disability benefits.
As of the end of January 2024, the latest figures from the Department for Work and Pensions (DWP) show the specific number of people receiving Personal Independence Payment (PIP) due to ‘Psychiatric disorders’. Work and Pensions Secretary Mel Stride commented: “I believe our welfare system is about much more than benefit payments – it’s about changing lives for the better. That’s why we’re bringing forward the next generation of welfare reforms. We’re already bringing outdated benefits by introducing Universal Credit.” “We have overhauled the system and are now building a new prosperity deal for Britain where no one is left behind.”
Chancellor Rishi Sunak has unveiled welfare reforms designed to modernize support for those in need, increase the value of the scheme for taxpayers and encourage people to find work rather than relying on benefits.
Scope, a disability charity, has criticized the government’s proposal to “reduce disabled people’s income by hitting PIP” during the cost of living crisis, describing the idea as “appalling”. The Solution Foundation think tank noted that the main announcement in Sunak’s speech was PIP consultations. The foundation, which acknowledged that reform was needed due to rising costs, argued that Sunak had presented “a statement of the problem rather than a plan”.
The Solution Foundation underlined that there was no concrete plan to address the issue and said: “While the speech revealed the problem that increasing health problems created for the Treasury, it did not present a plan to find a solution to this problem or did not mention any problems. While doing this, many difficulties emerged.” For example, while the Prime Minister is making the case for reform based on the increase in the number of mentally ill people seeking help, any major reforms will also affect those with physical disabilities.”
The foundation highlighted the financial impact of disability reforms on families, adding that “disabled people are among the poorest in society, with one in three adults in the poorest decile of the population having a disability.” Louise Murphy, a senior economist at the Resolution Foundation, said: “Increasing economic inactivity, and particularly increased inactivity due to long-term illness, is one of the biggest economic challenges facing Britain in the 2020s.”
“This not only reduces employment and growth, it also increases public spending and harms the living standards of those who are too sick to work. But the Prime Minister today put forward a statement of the problem rather than a plan, especially when the issue was raised.” This may reflect the extremely difficult nature of disability benefits reforms, but whoever wins the next election will need to move beyond rhetoric and consultations if they want to stop rising benefit bills and help more people. work.”
To get breaking news from your area direct to your inbox every day, go here To sign up for our free newsletter